Banks Seek Broader Delay of Small Business Data Collection Rule

A pair of banking trade groups that won a delay this week in implementing a new Consumer Financial Protection Bureau rule requiring the collection of small business borrowers’ demographic data now want that delay extended to all banks—but not to other lenders.

A federal judge in Texas on July 31 said the CFPB couldn’t require members of the Texas Bankers Association or the American Bankers Association, including all ABA members nationwide, to comply with the rule until the US Supreme Court determines whether the CFPB’s funding is constitutional.

Extending the delay to all banks insured by the Federal Deposit …